Profitability of Banks in Bosnia and Herzegovina: Panel Analysis

Paunović, Slađana; Popović, Borka; Kovačević, Dajana

doi:10.7251/zrefis1613011p

Cited by 1 publication

(2 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Even more, for Balkans case, bank's operative efficiency is more important as a risk generator than non-interest instruments. Similar characteristics are found in the studies of Petrevski (2015) and Paunovic et al (2016). This is the main reason why Balkan cases' results in profit structure and influence of crisis on NII differ from results of Williams (2016), Williams and Prather (2010), Brunnermeier et al (2012), Ghosh (2020) and Stiroh (2004).…”

Section: Resultssupporting

confidence: 84%

“…After sector reform and transition, Croatian and other South-East European banks used a two-tier system with commercial and retail activities influenced by the mono-central bank (Bonin, 2004). Similar studies in other Balkans states are analysed by Blazeska (2015) and Petrevski (2015) for Macedonia, and Paunovic et al (2016) for Bosnia and Herzegovina. However, there is a big gap in literacy for the Balkans (or South-East Europe) case due to the group-country sample set-up.…”

Section: Review Of Literaturementioning

confidence: 88%

See 1 more Smart Citation

Nexus of Bank Income Structure and Risk: Evidence from Balkans

Ranisavljević

Vuković

Maiti

2021

Global Business Review

View full text Add to dashboard Cite

In this study, we analysed the income structure of the 30 largest banks in seven Balkan countries in the period before, during and after the global economic crisis. Considering that the structure of income primarily consists of interest-bearing and non-interest-bearing income, we analysed whether the crisis has affected the change in the structure of banks’ income in the Balkans. To analyse this, we used panel and quantile regressions models. The study additionally implemented quantile regression for checking the robustness. The results show that there is a more significant correlation between non-interest-bearing and interest-bearing income, while the correlation with net profit is more moderate. According to our results, the interest income grew in the period when reference interest rates fell and when the negative effects of the economic crisis were most pronounced. The banks in the region of the Balkans built their profits more on interest-incomes in the period before and after the economic crisis.

show abstract